27th February 2014
Disclaimer
This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the pr...
Table of contents
1. 2013 key highlights
2. Group financial information
2.1. Energy
2.2. Infrastructure, Water and Service...
1. 2013 key highlights

José Manuel Entrecanales
Chairman
2. Group financial information

Carlos Arilla
Group Chief Financial Officer
2013 key highlights
(€m)

% Chg.

Revenues

6,607

-5.8%

EBITDA

1,228

-14.1%

EBITDA (ex regulatory impact)

1,485

+3....
2013 key highlights – extraordinary effects
Negative EBT explained by -€2.2bn of extraordinary effects
Positive
+ effects
...
Capex by division
Capex breakdown

Key highlights

By division

(€m)

Capex
Jan-Dec 12

Jan-Dec 13

Energy

440

205

Infr...
Debt breakdown by division and nature
Net debt breakdown

Gross debt breakdown

By division

(€m)

By nature

Infrastructu...
Net debt evolution
Net debt reconciliation 2013 (€m)

727

577
370
372

6,178

Debt
associated
to work in
progress
Derivat...
Debt amortization schedule
Principal repayment schedule 2014-2018 (€m)¹
731
48
91

566
494

48
29

55
39

10

7

7

1

470...
2.1. Energy

Rafael Mateo
CEO ACCIONA Energy
New framework model for Spanish renewables
Spanish Energy business heavily impacted by Electricity Sector Reform
 Regulat...
New framework model for Spanish renewables
Wind power bears the brunt of the cuts

Wind power the most affected: ~65% of t...
New framework model for Spanish renewables
Impact for ACCIONA

Impact of regulatory cuts adopted in the last 18-months rep...
New framework model for Spanish renewables
Impact for ACCIONA

Regulatory measures affecting ACCIONA 20122013

Annual EBIT...
Action Plan 2013–2014: Good progress
Energy division plays a key role in contributing to the company’s 20132014 Action Pla...
Action Plan 2013–2014: Good progress
Cost cutting detail

Achieving ACCIONA Energy Action Plan targets
Cost cutting

Cost ...
Strategic focus
Strategic focus on cash generation and lower capital intensive growth
►

Continue to
develop, design and
c...
Wind turbine business - AWP
AWP’s 3.0MW turbine is now a proven and competitive product
12 months of efforts to re-design ...
Energy: Key figures
Key figures

Key highlights


(Million Euro)

Jan-Dec 12 Jan-Dec 13

Chg.

15/2012 & RD-L 2/2013 as w...
Energy: Installed capacity and under construction
Installed MW @ Dec 2013

2013 Attributable production
Wind Spain  9.6TW...
Outlook 2014: Trends

 Negatively impacted by RD-L 9/2013
 EBITDA , affected by new regulation
 Capacity addition: ~2...
2.2. Infrastructure, Water and Service

Luis Castilla
CEO ACCIONA Infrastructure,
Water and Service
Key figures 2013
Revenues 2013

Revenues of €3,959m and
EBITDA of €157m

>29,000 employees in 25
countries

EBITDA 2013

B...
Infrastructure: Key figures and backlog
Key figures
(Million Euro)
Revenues
EBITDA
Margin (%)

Jan-Dec 12 Jan-Dec 13

Cons...
Infrastructure: Concessions

Road

Rail

Canal

Port

Hospital

Total

# of concessions

12

3

1

1

5

22

EBITDA FY 201...
Water and Service
Water: key figures
(Million Euro)
Revenues
EBITDA
Margin (%)

Jan-Dec 12 Jan-Dec 13

Service: key figure...
Reorganization of the division
Reorganization based on 5 drivers:
1

Maximize specialization creating new business lines
2...
Reorganization of the division
Business Units will be accountable for their own P&L
Units specialized in “products”

Units...
Reorganization of the division
Specialized Businesses
Civil works (new)
Roads,
special
structures &
bridges

Industrial bu...
Reorganization of the division
Integrated international development
North America

Latam

4 regions for
international
deve...
Reorganization of the division
Strong footprint and significant business opportunities in all regions
Business opportuniti...
Reorganization of the division
What will be the benefits from the new organization?
► Common and integrated international
...
Outlook 2014: Trends

Water

Infrastructure

Service



Revenues =



Revenues 



Revenues 



EBITDA ≈



EBITDA ...
3. Strategic update and closing remarks

Juan Muro-Lara
Chief Corporate Development
and IR Officer
Action Plan

What we aim to achieve
The Action Plan aims to:
► Mitigate significant impact of regulatory changes affecting...
Action Plan

Strategic / Financial measures

Status

Dividend

Capex

► 2013 interim dividend cancelled  Unprecedented

►...
Action Plan

Sale of minority stake in International energy portfolio
ACCIONA Energía has recently initiated the process o...
Action Plan

Sale of minority stake in international energy portfolio

Operating data
 Portfolio net capacity: 2,273MW

F...
Action Plan

Other activities
► 2013 Revenues: €113m

Bestinver

► 2013 EBITDA:€78m
► AUM: €8,930m

Trasmediterranea

► 20...
Closing remarks
MO draft is the final step of the energy regulatory reform
Major impact in Group financials
Balance sheet ...
Appendix
Real Estate: 2013 independent asset appraisal
GAV (€m)
2012

GAV 2013 breakdown
2013

By region

By asset type

44% Reside...
New IFRS 11 - Implications
New accounting rules applicable from 01/01/2014 – changes in
consolidation method affecting cer...
27th February 2014
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Acciona Results Report FY 2013

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Acciona Results Report FY 2013

  1. 1. 27th February 2014
  2. 2. Disclaimer This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the presentation of financial results for the full year of 2013 (FY2013). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the one expressed above, without the prior written consent of the Company. The Company does not assume any liability for the content of this document if used for different purposes thereof. The information and any opinions or statements made in this document have not been verified by independent third parties, nor audited; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions or statements expressed herein. Neither the Company, its subsidiaries or any entity within ACCIONA Group or subsidiaries, any of its advisors or representatives assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents. The information contained in this document on the price at which securities issued by ACCIONA have been bought or sold, or on the performance of those securities, cannot be used to predict the future performance of securities issued by ACCIONA. Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement. IMPORTANT INFORMATION This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Law 24/1988, of July 28, as amended and restated from time to time), Royal Decree-Law 5/2005, of March 11, and/or Royal Decree 1310/2005, of November 4, and its implementing regulations. In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a request for any vote or approval in any other jurisdiction. Particularly, this document does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. FORWARD-LOOKING STATEMENTS This document contains forward-looking information and statements about ACCIONA, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates” and similar expressions. Although ACCIONA believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ACCIONA shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ACCIONA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the documents sent by ACCIONA to the Comisión Nacional del Mercado de Valores, which are accessible to the public. Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of ACCIONA. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to ACCIONA or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to ACCIONA, on the date hereof. Except as required by applicable law, ACCIONA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. FY 2013 Results Presentation 2
  3. 3. Table of contents 1. 2013 key highlights 2. Group financial information 2.1. Energy 2.2. Infrastructure, Water and Service 3. Strategic update and closing remarks Appendix FY 2013 Results Presentation 3
  4. 4. 1. 2013 key highlights José Manuel Entrecanales Chairman
  5. 5. 2. Group financial information Carlos Arilla Group Chief Financial Officer
  6. 6. 2013 key highlights (€m) % Chg. Revenues 6,607 -5.8% EBITDA 1,228 -14.1% EBITDA (ex regulatory impact) 1,485 +3.8% 29 -88.1% 286 +16.7% -2,174 n.m. Ordinary capex 381 -55% NFD (vs Dec 12) 6,715 -10% Ordinary EBT Ordinary EBT (ex regulatory impact) EBT FY 2013 Results Presentation   6
  7. 7. 2013 key highlights – extraordinary effects Negative EBT explained by -€2.2bn of extraordinary effects Positive + effects €19m ► Capital gains from the disposals of: − Korean renewable assets  €18m − Canadian Royal Jubilee Hospital concession  €1m Energy - €1,675m Negative effects €2,223m Infrastructure €288m Rest €260m ► Goodwill deterioration  €870m ► Value impairment Spanish renewable assets  €563m ► Both consequence of successive regulatory changes in Spain ► Mainly related to Poland and Brazil − Poland  Executed works pending certification and other − Brazil  Mainly related to the cancelation of a shipyard construction contract ► Real Estate: €100m  Impairment of assets ► Other: €160m  Mainly due to Trasmediterranea’s fleet value deterioration FY 2013 Results Presentation 7
  8. 8. Capex by division Capex breakdown Key highlights By division (€m) Capex Jan-Dec 12 Jan-Dec 13 Energy 440 205 Infrastructure 343 198 Water 83 30 Service -10 854 -24 -104 Total net capex 831 Core areas capture most of 2013 capex: 381 Extraordinary divestments  -61 Net ordinary capex Significant ordinary capex reduction to €381m (-55%) 10 -2  Other Activities − Infrastructure: Capex down by 42%. Diversified in various concessions works e.g. Ruta 160 road (Chile), Chinook road (Canada) and Rodovía do Aço road (Brazil) − Energy: Capex down by 54% o 105MW wind installed during 278 -55% 2013 o 285MW under construction FY 2013 Results Presentation 8
  9. 9. Debt breakdown by division and nature Net debt breakdown Gross debt breakdown By division (€m) By nature Infrastructure Net Debt 31-Dec-12 Energy Net Debt 31-Dec-13 6,086 5,215 225 77 42 28 Other Activities 1,052 1,130 Total Net Debt 7,482 6,715 Recourse 68 Service Non recourse 67% 275 Water 33% €8,332m (Million Euro) 31-Dec-13 Gross debt 8,332 Cash & cash equivalents -1,617 Net Financial Debt 6,715 Issue of €342m convertible bond  A milestone for ACCIONA FY 2013 Results Presentation 9
  10. 10. Net debt evolution Net debt reconciliation 2013 (€m) 727 577 370 372 6,178 Debt associated to work in progress Derivatives 5,973 Debt associated to work in progress Derivatives FY 2013 Results Presentation 10
  11. 11. Debt amortization schedule Principal repayment schedule 2014-2018 (€m)¹ 731 48 91 566 494 48 29 55 39 10 7 7 1 470 2 352 40 584 18 9 148 23 7 481 389 285 2014 Energy 2015 Infrastructures 2016 Water 292 2017 2018 Service Other Activities Undrawn corporate credit lines of €1.0bn as of 31/12/2013 €1.7bn as of 19/02/2014 ¹ Excludes bilateral credit policies, project bridge financing and real estate development loans Note: Repayment schedule during the period to December 2018 FY 2013 Results Presentation 11
  12. 12. 2.1. Energy Rafael Mateo CEO ACCIONA Energy
  13. 13. New framework model for Spanish renewables Spanish Energy business heavily impacted by Electricity Sector Reform  Regulatory changes applying from 1 Jan 2013 – Impact was already known  Draft Ministerial Order (MO) with incremental impact – Recently published MO contains the inputs and outputs of the new regulatory framework for renewables MO draft publication allows the sector to assess accurate preliminary impacts Approval of Royal Decree enacting the new framework for renewables shortly and related MO expected by mid-to-late March Extent of remuneration cuts worse than expected Initial estimate: ~€2bn annually (higher than stated targets of €1.5bn) FY 2013 Results Presentation 13
  14. 14. New framework model for Spanish renewables Wind power bears the brunt of the cuts Wind power the most affected: ~65% of the cuts Wind the most efficient technology, contributes the most to reducing wholesale prices, creates employment, avoids fossil fuel imports and positioned Spain at the forefront of the global energy industry The average Spanish wind asset will see a cut in the incentives received of almost 50% and a cut in total income around 25% Assets commissioned before 2005 (~40% of the total 23GW installed in Spain) will not receive any incentive over the wholesale price  Revenue cut of close to 50% Early deployment is penalized FY 2013 Results Presentation 14
  15. 15. New framework model for Spanish renewables Impact for ACCIONA Impact of regulatory cuts adopted in the last 18-months represents a major blow to ACCIONA’s profitability and value ~40% of ACCIONA´s wind assets installed pre-2005 Based on an external expert report  The PF/annualized impact on 2013 equivalent to €420m at the EBITDA and PBT levels Based on an average year of output and current wholesale prices, ACCIONA estimates an impact of ~€360m at EBITDA and PBT levels This impact is roughly equivalent to a 40% cut in EBITDA of its Spanish generation business, wiping out its profits and turning it into a loss-making activity Impact reflected in reported EBITDA in 2013 amounts to €257m, with the new renewable framework applying from 14 July 2013 FY 2013 Results Presentation 15
  16. 16. New framework model for Spanish renewables Impact for ACCIONA Regulatory measures affecting ACCIONA 20122013 Annual EBITDA impact: 2013 Proforma Estimated annual EBITDA impact: normalized year Pre-tax Σ €249m Pre-tax Σ ~€200m + + Pre-tax Σ €65m Pre-tax Σ ~€60-70m + + Pre-tax Σ €106m Pre-tax Σ ~€100m RD-L 9/20131 Wind Mini – hydro CSP Law 15/2012 RD-L 2/2013 Biomass Removal of the pool + premium option and revision of the tariff update formula 7% generation revenue tax and hydro levy CSP economic framework Pre-tax Σ€420m 1 Includes elimination of reactive energy incentive (RD-L 9/2013) Pre-tax Σ~€360m-€370m FY 2013 Results Presentation 16
  17. 17. Action Plan 2013–2014: Good progress Energy division plays a key role in contributing to the company’s 20132014 Action Plan 2013 targets achieved (50% reduction vs initial business plan) Asset rotation / minority partnerships: group-wide disposals of €0.5-1.0bn (EV) over 2013-14 2013 cost reduction target exceeded  €39m achieved (vs €31m 2013 target) ► 9% staff reduction (14% in Spain – flat international) Efficiency improvement +21% (MWh/employee) ► Capex deceleration: €550-630m for 2013-14 ► ► Cost-base reduction: €35-40m/year Capex in 2013 falls by >50% to €205m ► ► Executing only committed investments (mainly South Africa, Costa Rica and Chile) Residual capex to complete these projects by Q1 2015 amounts to ~€370m ► No projects being launched at this stage for 2015 ► Pushing back capex to improve net debt ► Significant 14% debt reduction (hurting AWP 2013 profitability) to €5.2bn (from €6.1bn Dec’12) ► Achieved €271m by exiting mature markets (62MW in Korea - EV €114m and 150MW in Germany - EV of €157m) ► Launched process to secure a minority investor for ACCIONA Energy’s 2.3GW International portfolio FY 2013 Results Presentation 17
  18. 18. Action Plan 2013–2014: Good progress Cost cutting detail Achieving ACCIONA Energy Action Plan targets Cost cutting Cost reduction of €38.5m vs estimated reduction of €30.7m in 2013 Target (€m) Achievement (€m) O&M 13.7 16.3 Others 17.0 22.2 Total 30.7 38.5 Reduction of staff of 9%:  -14% in Spain  Maintained in international area (reductions in mature countries like US, Australia and Europe) Efficiency improvements of 21% Note: Staff of ACCIONA Energy excludes staff of AWP FY 2013 Results Presentation 18
  19. 19. Strategic focus Strategic focus on cash generation and lower capital intensive growth ► Continue to develop, design and construct renewable assets:  Partnerships Promote EPC and other activities, leveraging on our development, construction, O&M, capabilities for third-parties − No capex requirements − Good progress made Australia, Mexico and Chile − Target: 400MW/pa  126MW under construction + 299MW awarded pending NTP in Canada, Mexico, Chile and Australia (100% for third parties) ►  EPCs Growth backed by partnerships: − Launched a process to secure a minority partner for the international asset portfolio − Partners at project level in strategic countries ► Wind turbine manufacturing business AWP AWP plays a key role in ACCIONA Energy fully-integrated business model ► AWP needs to be profitable on its own right ► Two-year target (end-2014): 20% COE reduction (13% achieved)  Increased to 25% by end-2014 ► AWP’s 3.0MW turbine is now a proven and competitive product Unrelenting focus on cost efficiency Debt reduction & optimization FY 2013 Results Presentation 19
  20. 20. Wind turbine business - AWP AWP’s 3.0MW turbine is now a proven and competitive product 12 months of efforts to re-design processes  Significant COE reduction  On track to achieve 2-year target to reduce COE by -20% by 2014  -13% achieved in 2013  Reduction target for 2014 increased to -25% (base 2012) … making AWP’s 3MW turbine competitive in key markets such as Brazil, US and new growing markets (South Africa, Turkey,…) Capacity production saturated for 2014 and part of 2015 Full order book to be delivered in 2014-15: >1.1GW + 0.5GW in late stage of negotiations  >80% for third parties  Brazil (40%), US & Canada (25%), Mexico (20%), RoW (15%) Positive EBITDA contribution expected for 2014 FY 2013 Results Presentation 20
  21. 21. Energy: Key figures Key figures Key highlights  (Million Euro) Jan-Dec 12 Jan-Dec 13 Chg. 15/2012 & RD-L 2/2013 as well as the RD-L Chg. (%) Revenues 2,107 2,120 13 0.6% EBITDA 1,125 979 -146 77.4% 70.4% 9/2013(e) in force since 14/07/13) amounted to €257m in 2013 -13.0% Adj. Gen. Mg 1 The impact from the regulatory changes (Law  Attributable production up 10%: Increased capacity in LTM (+105MW) and higher national wind and hydro load factors vs. FY 2013, partially offset by lower solar and international wind load factor  Action Plan 2013-2014 implementation on track: 62MW in Korea sold for EV €114m and 150MW in 2013 Energy EBITDA breakdown (€m) 1 Adjusted generation EBITDA margin excludes the activity of energy commercialization Germany sold for an EV of €157m 2013 attributable installed capacity (MW) FY 2013 Results Presentation 21
  22. 22. Energy: Installed capacity and under construction Installed MW @ Dec 2013 2013 Attributable production Wind Spain  9.6TWh MW (Total) Spain Internat. Total Wind 4,743 2,397 7,139 Conventional Hydro 681 - 681 Hydro special regime 231 - 231 Solar Thermoelectric 250 64 314 Biomass 57 - 3 46 49 Cogeneration 9 2,506 -1% Hydro  2.9TWh +58% Solar  0.6TWh -8% Others  0.5TWh +1% 9 5,974 Wind Inter.  6.4TWh 57 Solar PV +10% 8,480 TOTAL Total attrib. prod.  20.0TWh +10% Future installations WIND Under construction:  Costa Rica 8MW  Chile 45MW  South Africa 138MW SOLAR PV 90% Attributable Under construction  South Africa 94MW FY 2013 Results Presentation 22
  23. 23. Outlook 2014: Trends  Negatively impacted by RD-L 9/2013  EBITDA , affected by new regulation  Capacity addition: ~200MW  Committed capex / assets under construction: ~€350m  AWP: Positive EBITDA contribution expected Energy  Single digit percentage change approximately   Double digit percentage change approximately FY 2013 Results Presentation 23
  24. 24. 2.2. Infrastructure, Water and Service Luis Castilla CEO ACCIONA Infrastructure, Water and Service
  25. 25. Key figures 2013 Revenues 2013 Revenues of €3,959m and EBITDA of €157m >29,000 employees in 25 countries EBITDA 2013 Backlog of ~€16,500m FY 2013 Results Presentation 25
  26. 26. Infrastructure: Key figures and backlog Key figures (Million Euro) Revenues EBITDA Margin (%) Jan-Dec 12 Jan-Dec 13 Construction backlog Dec 2013 Chg. 3,326 2,733 -593 -17.8% 163 82 -81 -49.6% 4.9% 3.0% Key highlights    International 54% Chg. (%) Spain 46% €5,723m International backlog Dec 2013 By region Revenues decrease due to construction slowdown in Spain and in international area. Lower EBITDA mainly explained by losses in certain international works Slightly lower EBITDA from concessions due to the disposal of University San Luis de Potosi (Mexico) in Q3 2012 and Royal Jubilee Hospital (Canada) in Q3 2013  Excluding these effects concessions EBITDA would have increased +8.3% International backlog reaches 54% Latam (44%) Europe (30%) Canada (5%) Australia (5%) RoW (16%) €3,078m FY 2013 Results Presentation 26
  27. 27. Infrastructure: Concessions Road Rail Canal Port Hospital Total # of concessions 12 3 1 1 5 22 EBITDA FY 2013 (€m) 43 0 3 0 18 59¹ 33 32 30 30 29 33 6 7 7 8 6 6 1,337 68 60 17 217 1,772² 3 Average life (yrs) 3 Average consumed life (yrs) Invested capital (€m) Equity: €420m Net debt4: €1,352m Canada Under construction Spain Invested capital (€1,772m2) Operating Chile Brazil Operat. + under construction Mexico ¹ Total EBITDA includes -€4,1m from holding companies. Also includes EBITDA accumulated from Royal Jubilee hospital until its sale (August) ² Total Capital invested includes €73m from SPV companies Weighted average by book value (equity + net debt) excluding holding companies Debt figure includes net debt from concessions held for sale (€104m) and those accounted by equity method (€736m) 3 4 FY 2013 Results Presentation 27
  28. 28. Water and Service Water: key figures (Million Euro) Revenues EBITDA Margin (%) Jan-Dec 12 Jan-Dec 13 Service: key figures Chg. Chg. (%) (Million Euro) 506 585 79 15.6% Revenues 41 54 13 30.5% EBITDA 8.2% 9.2% ACCIONA Water includes: construction & operation of desalination, waste water and reuse plants. Also includes water concessions (around 6 million people served)  Water backlog stands at €10.7bn Chg. (%) 641 49 8.3% 18 20 2 13.5% 3.0% 3.2% Key highlights  ACCIONA Service includes: facility services, airport handling, waste management, logistic services and other  Revenues up 8.3% to €641m mainly helped by higher volumes at facility services  EBITDA up 13.5% to €20m due to higher margin at the handling business Water revenues up 15.6% and EBITDA up 30.5%  Chg. 592 Margin (%) Key highlights  Jan-Dec 12 Jan-Dec 13 FY 2013 Results Presentation 28
  29. 29. Reorganization of the division Reorganization based on 5 drivers: 1 Maximize specialization creating new business lines 2 Reinforce accountability in each business line 3 Focus on profitability and risk control 4 5 Improve the effectiveness separating business development and delivery of contracts Look for synergies among the businesses and increase cost efficiencies FY 2013 Results Presentation 29
  30. 30. Reorganization of the division Business Units will be accountable for their own P&L Units specialized in “products” Units specialized in geographies Roads, special structures, and bridges Spain Railways and tunnels Mexico Brazil Ports and hydraulic projects Chile Water Australia Industrial construction Service Canada Poland FY 2013 Results Presentation 30
  31. 31. Reorganization of the division Specialized Businesses Civil works (new) Roads, special structures & bridges Industrial business ► >1,700km of roads during ► Focus on water treatment the last 10 years ► Hundreds of bridges Water including international awards and world records ► World leader in reverse osmosis desalination ► Focus on EPCs for electric ► >2,700km of high speed Railways and tunnels railways and >50km of railway viaducts ► >160 tunnels Industrial engineering ► >100km of metro Ports and hydraulic projects in the world (Algeciras) ► Largest dam in Western Europe (Alqueva) power generation, oil & gas plants and mining ► Participation in >€1.3bn in contracts in the last 3 years ► Integrated service offering ► >60 ports ► First offshore gas terminal and significant presence in the integral water cycle Service including Facility Services and Facility Management ► Environment Services, Airport Handling, Energy Efficiency FY 2013 Results Presentation 31
  32. 32. Reorganization of the division Integrated international development North America Latam 4 regions for international development…  Latam  Europe, Africa and Middle East  Australia and Asiatic Southeast  North America Europe, Middle East and Africa Australia and Asiatic Southeast ...with support from platform countries:  Mexico, Chile, Brazil, Canada, Australia, Spain, Italy and UAE FY 2013 Results Presentation 32
  33. 33. Reorganization of the division Strong footprint and significant business opportunities in all regions Business opportunities Investment of €450bn p.a. on infrastructures (inc/water) and non-residential construction ► CAGR (2014-2019): 2.7% ► Latam ► ► ► ~4,200 employees Platform countries: Mexico, Chile and Brazil Presence in Colombia, Panama, Ecuador, Costa Rica, Dominican Rep. and Venezuela ► ► ► ~3,700 employees Platform countries: Spain, Italy & UAE Presence in Poland (Mostostal), Italy (Water) KSA and Portugal (Water & Service) Investment of €600bn p.a. on infrastructures (inc./water) and non-residential construction ► CAGR (2014-2019): 4.5% ► ► ► ~110 employees Platform country: Australia Presence in India and Hong Kong Investment of €700bn p.a. on infrastructures (inc./water) and non-residential construction ► CAGR (2014-2019): 2.6% ► ► ► ~410 employees Platform country: Canada Presence in US Investment of €1,300bn p.a. on infrastructures (inc./water) and non-residential construction ► CAGR (2014-2019): 2.9% ► Europe, Africa and Middle East Current positioning of ACCIONA ► Australia and SouthEast Asia ► North America FY 2013 Results Presentation 33
  34. 34. Reorganization of the division What will be the benefits from the new organization? ► Common and integrated international structure to support Infrastructure, Water and Service business development Revenue growth ► A single & more comprehensive global offer to clients ► Additional business opportunities from synergies among business units Overhead costs efficiency ► More efficient international organizational structure to support the business ► Focus on accountability and risk control Improved margins through specialization, technical excellence and consistent execution FY 2013 Results Presentation 34
  35. 35. Outlook 2014: Trends Water Infrastructure Service  Revenues =  Revenues   Revenues   EBITDA ≈  EBITDA   EBITDA   Capex ~€20-30m  Capex ~€60-70m  Capex ~€10-20m  Backlog =  Backlog =  Concessions and O&M weight   International backlog weight  FY 2013 Results Presentation 35
  36. 36. 3. Strategic update and closing remarks Juan Muro-Lara Chief Corporate Development and IR Officer
  37. 37. Action Plan What we aim to achieve The Action Plan aims to: ► Mitigate significant impact of regulatory changes affecting the Spanish renewable energy portfolio ► Financially deleverage the group and access a wider range of sources of capital ► Transform our growth model:  Focus on ACCIONA’s core competences as developer of infrastructure  Increased separation of developer & operator from LT owner/financier  Less capital-intensive growth and less reliant on bank project finance debt  Access new sources of long-term capital via private partnerships / transactions FY 2013 Results Presentation 37
  38. 38. Action Plan Strategic / Financial measures Status Dividend Capex ► 2013 interim dividend cancelled  Unprecedented ► Significant short term capex reduction  FY13 capex –55% ► Significant cost reduction plan being implemented in Costs Debt Disposals /Partners hips Reorganisation Energy, Infrastructure & Other Activ. More initiatives under consideration ► Looking for new sources of capital  Issuance of €342m convertible bonds ► Plan to dispose €0.5-1.0bn worth of assets in 2013-14 ► 2013  Disposals worth ~€370m ► Divisional reorganisation  Infra + Water + Service ► Senior management changes FY 2013 Results Presentation 38
  39. 39. Action Plan Sale of minority stake in International energy portfolio ACCIONA Energía has recently initiated the process of securing a longterm partner for its international renewable energy portfolio ► The strategic relationship to enable ACCIONA Energy to accelerate its growth ► ACCIONA Energy is seeking to sell a substantial minority stake Operative portfolio A unique portfolio: 2,273MW (net)1 1Assets that have been consolidated to date under the proportional method will be accounted as associates (equity method) from 2014 onwards due to changes in accounting rules Under construction FY 2013 Results Presentation 39
  40. 40. Action Plan Sale of minority stake in international energy portfolio Operating data  Portfolio net capacity: 2,273MW Financial data  ~€500m of revenues o In operation 2,078MW  ~€350m of EBITDA o Under construction 195MW  ~€130m of cash available for dividends  7.2TWh (net) of output  Consolidated debt: ~€1.4bn  Average load factor: 36% ― All project level, 90% non-recourse  Average remaining life: +20 years ― Average cost of financing ~7.8% ― 80% is fixed rate or is hedged  98% of dividend from PPA & Reg. Hedge  ~50% of revenue in US$  ~20% in € Operating and financial data includes full contribution from assets currently under construction Net consolidated debt as of 31/12/2013 FY 2013 Results Presentation 40
  41. 41. Action Plan Other activities ► 2013 Revenues: €113m Bestinver ► 2013 EBITDA:€78m ► AUM: €8,930m Trasmediterranea ► 2013 Revenues: €419m ► 2013 EBITDA: €11m ► 2013 Revenues: €66m Real Estate ► 2013 EBITDA: €3m ► GAV 2013: €1,401m  85% Spain, 15% International ► 3 concessions: 2 roads and 1 hospital Canadian Concessions platform − Nouvelle Autoroute A-30  Montreal - toll road-highway between Châteauguay and Vaudreuil-Dorion (74km) − Chinook roads (SEST)  Calgary ring motorway (25km) − Fort St John  Hospital: DBFOM for a new 55-bed hospital (plus 123 nursing home patients) FY 2013 Results Presentation 41
  42. 42. Closing remarks MO draft is the final step of the energy regulatory reform Major impact in Group financials Balance sheet and liquidity strengthening:  Significant capex reduction  Disposals  Cost cutting  Interim dividend cancellation  Convertible bond Action Plan for the transformation of growth model:  Integration of Infrastructure / Water / Service  Partnerships  Less reliant on group capex FY 2013 Results Presentation 42
  43. 43. Appendix
  44. 44. Real Estate: 2013 independent asset appraisal GAV (€m) 2012 GAV 2013 breakdown 2013 By region By asset type 44% Residential 31% Offices 24% Other Development Book value Land Rental Gross capital gain GAV 2013: €1,401m Note: Independent asset appraisal – Savills, Aguirre Newman and Instituto de valoraciones FY 2013 Results Presentation 44
  45. 45. New IFRS 11 - Implications New accounting rules applicable from 01/01/2014 – changes in consolidation method affecting certain assets Proportionally accounted assets will now be accounted by equity method (IFRS 11) Preliminary analysis suggests the following estimated effect: Revenues (€m) Reported 2013 Restated 2013 (*) EBITDA Reported 2013 Var. NFD Restated 2013 (*) Reported 2013 Var. Restated 2013 (*) Var. Infrastructure 2,733 2,655 -78 82 62 -20 275 153 -121 Energy 2,120 1,933 -187 979 858 -121 5,215 4,816 -399 Water 585 490 -95 54 41 -13 68 51 -17 Service 641 627 -13 20 21 0 28 26 -1 Other Activities 529 522 -7 92 87 -6 1,130 993 -137 6,607 6,227 -380 1,228 1,069 -160 6,715 6,040 -676 Total (*) Re-estated 2013 figures according to new accounting rulling applicable from 1/01/2014 (IFRS 11) 2013 quarterly like-for-like figures under new accounting principles to be provided in due course FY 2013 Results Presentation 45
  46. 46. 27th February 2014

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